AB398 - Revises provisions governing compensation for certain employees of public schools. (BDR 34-189)

- 83rd Session (2025) Assembly Bill No. 398–Assemblymembers Yeager and Hafen CHAPTER.......... AN ACT relating to education; requiring the Department of Education to award money to school districts to provide compensation in addition to base pay for hard-to-fill positions in public schools; requiring school districts to report certain information relating to hard-to-fill positions; eliminating the authority in certain large school districts to use weighted funding provided to a school for certain pupils to pay certain hiring and retention incentives; revising the powers of the Subcommittee on Education Accountability of the Interim Finance Committee; making an appropriation to the Interim Finance Committee for allocation to the Department to fund compensation in addition to base pay for hard-to-fill positions in public schools; making an appropriation to provide money to charter schools for salary increases for teachers and education support professionals; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Section 2 of this bill requires the Department of Education, to the extent that money has been appropriated for that purpose, to make awards to school districts to provide compensation, in addition to base pay, for hard-to-fill positions in the public schools of this State. Section 2 defines “hard-to-fill position” as including: (1) teacher positions at certain Title I schools; and (2) teacher positions and other positions filled by licensed educational personnel whose duties include actively teaching pupils in certain subjects which are suffering from a critical labor shortage. Section 2 requires each school district to submit a biennial report to the Office of Finance in the Office of the Governor and the Interim Finance Committee regarding the number of teachers receiving such additional compensation, the total amount of such additional compensation being provided in the school district and the number of hard-to-fill positions in public schools in the school district. Section 8.9 of this bill imposes certain requirements for the contents of this report which are applicable only to the report that is required to be submitted on or before December 1, 2026. Existing law requires the Governor, to the extent practicable, to include in the proposed executive budget certain recommendations concerning education funding, including recommendations for the statewide base per pupil funding amount and the multiplier for each category of pupils. (NRS 387.12455) Section 8.1 of this bill additionally requires the Governor, to the extent practicable, to include in the proposed executive budget recommendations for the amount of money to appropriate to the Department to make awards to school districts pursuant to section 2. Section 8.5 of this bill appropriates $45,000,000 in both Fiscal Year 2025-2026 and Fiscal Year 2026-2027 to the Interim Finance Committee for allocation to the Department to distribute to school districts to provide compensation, in addition to base pay, for hard-to-fill positions in public schools. Section 8.5 establishes certain – 2 – - 83rd Session (2025) requirements which must be satisfied before the money is allocated by the Interim Finance Committee. Under the Pupil-Centered Funding Plan, existing law requires a public school that receives weighted funding for one or more at-risk pupils or pupils who are English learners to use such funding only to provide services to such pupils, which are referred to as “Victory services” and “Zoom services,” respectively. (NRS 387.121, 387.12445) Existing law authorizes the use of this weighted funding to provide incentives for hiring and retaining teachers and other licensed educational personnel who provide such services. (NRS 387.12445) Section 8 of this bill eliminates the authority to use weighted funding to pay for such incentives in a school district located in a county whose population is 700,000 or more (currently the Clark County School District). Existing law creates the Subcommittee on Educational Accountability of the Interim Finance Committee and authorizes the Subcommittee to study various matters related to accountability in public education. (NRS 218E.415) Section 8.3 of this bill additionally authorizes the Subcommittee to study the compensation paid to teachers at public schools to determine whether such compensation is sufficient to ensure competitiveness with other states and optimal educational achievements and outcomes for pupils. Section 8.7 of this bill appropriates $19,314,297 in both Fiscal Year 2025-2026 and Fiscal Year 2026-2027 to the Interim Finance Committee for allocation to the State Public Charter School Authority to provide money to charter schools for salary increases for teachers and education support professionals. Section 8.7 requires each charter school in this State to submit certain information to the State Public Charter School Authority, including the number of teachers and education support professionals employed by the charter school on October 1, 2024, and October 1, 2025, and a plan to provide such salary increases in each fiscal year. Section 8.7 requires the State Public Charter School Authority to compile and submit such information to the Interim Finance Committee as a condition for receiving an allocation by the Interim Finance Committee from the appropriation made by section 8.7. Section 8.7 provides the method for calculating the amount of money from the appropriation which the State Public Charter School Authority may distribute to each charter school. EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. Chapter 387 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 and 3 of this act. Sec. 2. 1. To the extent that money has been appropriated for that purpose, the Department shall award money to school districts to provide compensation, in addition to base pay, for hard-to-fill positions in the public schools of this State. 2. It is the intent of the Legislature that the additional compensation for hard-to-fill positions funded pursuant to subsection 1 is a temporary solution to ameliorate the urgent – 3 – - 83rd Session (2025) problem of high teacher vacancy rates, which are detrimental to student outcomes. 3. An application by a school district applying for an award of money pursuant to subsection 1 must include: (a) The total amount of money which the school district is requesting; (b) The total number of hard-to-fill positions in public schools for which the school district intends to provide additional compensation using the money requested; (c) Documentation sufficient to demonstrate that each hard-to- fill position for which the school district intends to provide additional compensation using the money requested was filled during the immediately preceding calendar quarter; and (d) Such other information or documentation as the Department may require. 4. Money awarded to a school district pursuant to subsection 1 is subject to collective bargaining, but may only be used to provide additional compensation for hard-to-fill positions in public schools. 5. Not later than December 1 of each even-numbered year, each school district shall submit a report to the Office of Finance and the Interim Finance Committee that states: (a) The total number of teachers in the school district receiving additional compensation funded pursuant to this section during the then-current school year; (b) The total amount of the additional compensation funded from an award made pursuant to this section that is being provided to teachers during the then-current school year; and (c) The total number of hard-to-fill positions in public schools in the school district. 6. As used in this section: (a) “Hard-to-fill position” means: (1) A teacher position at a Title I school which has: (I) A vacancy rate for teacher positions of 15 percent or more, if the school is a high school; (II) A vacancy rate for teacher positions of 12 percent or more, if the school is a middle school or junior high school; or (III) A vacancy rate for teacher positions of 10 percent or more, if the school is an elementary school. (2) A teacher position or other position staffed by a person licensed pursuant to chapter 391 of NRS: (I) Who is the teacher of record assigned to a classroom of pupils; and – 4 – - 83rd Session (2025) (II) Whose duties include actively teaching pupils during a class period, for the majority of class periods during the school day, in English language arts, mathematics, science or special education, if such subjects are suffering from a critical labor shortage, as determined by the board of trustees of the school district. (b) “Public school” does not include a public school that is formed pursuant to the provisions of chapter 388A of NRS. Secs. 3-7. (Deleted by amendment.) Sec. 8. NRS 387.12445 is hereby amended to read as follows: 387.12445 1. Except as otherwise provided in subsection 2, each school district shall ensure that all adjusted base per pupil funding received by the school district pursuant to paragraph (c) of subsection 2 of NRS 387.1214 is accounted for separately and, after a deduction for the administrative expenses of the school district in an amount which does not exceed the amount prescribed by the Department by regulation for each school district, be distributed and used as described in this subsection. The adjusted base per pupil funding provided to each school district must: (a) Be distributed by each school district to its public schools in a manner that ensures each pupil in the school district receives a reasonably equal educational opportunity. (b) Be used to support the educational needs of all pupils in the school district, including, without limitation, operating each public school in the school district, training and supporting educational personnel and carrying out any program or service established by, or requirement imposed pursuant to, this title for any purpose for which specific funding is not appropriated pursuant to paragraph (a), (b) or (e) of subsection 2 of NRS 387.1214 or NRS 387.122. 2. If a school district determines that an additional amount of money is necessary to satisfy requirements for maintenance of effort or any other requirement under federal law for pupils with disabilities enrolled in the school district, the school district may transfer the necessary amount of money from the adjusted base per pupil funding received by the school district for that purpose. 3. Each school district shall ensure that all weighted funding received by the school district pursuant to paragraph (e) of subsection 2 of NRS 387.1214 is accounted for separately and distributed directly to each school in which the relevant pupils are estimated to be enrolled. 4. Each public school shall account separately for the local funding for pupils with disabilities received by the public school pursuant to paragraph (b) of subsection 2 of NRS 387.1214, for the – 5 – - 83rd Session (2025) adjusted base per pupil funding received by the public school pursuant to paragraph (c) of subsection 2 of NRS 387.1214, for each category of weighted funding received by the public school pursuant to paragraph (e) of subsection 2 of NRS 387.1214 and for money received from the statewide multiplier pursuant to NRS 387.122. Unless the provisions of subsection 7 or 8 impose greater restrictions on the use of weighted funding by a public school, the public school must use the weighted funding received for each relevant pupil: (a) As a supplement to the adjusted base per pupil funding received for the pupil; and (b) Solely for the purpose of providing such additional educational programs, services or support as are necessary to ensure the pupil receives a reasonably equal educational opportunity. 5. Except as otherwise provided in subsection 6, the separate accounting required by subsection 4 for pupils with disabilities and gifted and talented pupils must include: (a) The amount of money provided to the public school for special education; and (b) The cost of: (1) Instruction provided by licensed special education teachers and supporting staff; (2) Related services, including, without limitation, services provided by psychologists, therapists and health-related personnel; (3) Transportation of the pupils with disabilities and gifted and talented pupils to and from school; (4) The direct supervision of educational and supporting programs; and (5) The supplies and equipment needed for providing special education. 6. Money received from federal sources must be accounted for separately and excluded from the accounting required pursuant to subsection 5. 7. A public school that receives weighted funding for one or more at-risk pupils must use that weighted funding only to provide Victory services and, if one or more at-risk pupils for whom the school received weighted funding in the at-risk pupil category also belong to one or more other categories of pupils who receive weighted funding, the additional services for each such at-risk pupil which are appropriate for each category to which the at-risk pupil belongs. 8. A public school that receives weighted funding for one or more pupils who are English learners must use that weighted – 6 – - 83rd Session (2025) funding only to provide Zoom services and, if one or more English learners for whom the school received weighted funding in the English learner category also belong to one or more other categories of pupils who receive weighted funding, the additional services for each such English learner which are appropriate for each category to which the English learner belongs. 9. The Department shall adopt regulations prescribing the maximum amount of money that each school district may deduct for its administrative expenses from the adjusted base per pupil funding received by the school district. When adopting such regulations, the Department may express the maximum amount of money that may be deducted as a percentage of the adjusted base per pupil funding received by the school district. 10. As used in this section: (a) “Victory services” means any one or more of the following services: (1) A prekindergarten program provided free of charge. (2) A summer academy or other instruction for pupils [Text truncated for display. Full text available on LegiScan.]